The new six-story building would sit on a block that currently houses surface parking. Two historic Nye’s buildings would stay put but a new three-story building would sprout up between them, replacing a third structure. Originally, the developer planned to raze the third building and move the others next to each other.

Facades of the two historic buildings are mostly blank, but Schafer Richardson plans to add windows, canopies and better lighting for pedestrians. The street-level upgrades line up with development standards set by the Nicollet Island East Bank Neighborhood Association, which earlier this year rescinded its approval of the high-rise project.

In addition, the new plans eliminate above-grade parking. The previous proposal had parking on the second through sixth floors. Revisions keep intact between 8,000 and 10,000 square feet of ground-level retail space.

Downsizing the project any further would significantly diminish the financial upside for the developer. Going any smaller isn’t an option, Schafer Richardson development director Maureen Michalski said, noting stakeholders’ concerns about the size of the project shaped the revised plan.

“Our prior proposal was too large for the site. We worked to craft this current proposal that we believe addresses stakeholder feedback,” she said. “It’s a very different project and we worked with our partners to come up with a plan that we believe meets stakeholder needs but also is financially viable.”

Talks among community groups, the city, Shafer Richardson and Nye’s owners will continue this month. The Minneapolis Heritage Preservation Commission and the Planning Commission Committee of the Whole have scheduled a joint informational meeting on the project for Sept. 24.

For now, the compromise looks like it’ll stick – at least among the neighbors that sounded off the loudest on the original high-rise plan.

“The revised proposal is a positive step and we are pleased the owners and developer have responded to concerns voiced by the neighborhood and parish,” Our Lady of Lourdes said in a statement. “There is much to be learned, but we believe all parties can work with the six-story building that is now proposed.”

P. Victor Grambsch, president of the Nicollet Island East Bank Neighborhood Association, said the group would consider the new project framework at its October meeting. He doesn’t expect to put up any stiff opposition, though he said the proposed building is underwhelming.

“It’s better than the parking lot, but it’s hard to see anyone being too excited about it except the people who really don’t like tall buildings,” he said.

Schafer Richardson is still refining details of the project, including the mix of units and their layouts. Through ongoing conversations with stakeholders, the developer plans to fine-tune the exterior that will include numerous windows.

The updated project needs to nail down required city approvals. The developer expects to wrap up necessary meetings and public hearings early next year, in time to kick off construction in early summer, roughly in line with the original timetable.

A smaller-scale project reduces the construction timeline to between 12 and 14 months, down from more than 20 months.

Nye’s, a favorite corner bar in Minneapolis, plans to close early next year after more than six decades in business.

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